FDIC issues order on CB&T; Habersham Bank also under state order
Two North Georgia banks that operate divisions in Jackson and Barrow counties are reportedly under “cease and desist orders” from banking regulators.
The FDIC released a 29-page “cease and desist” order last Friday against Community Bank and Trust that was dated May 11. CB&T is headquartered in Cornelia and operates multiple divisions in Northeast Georgia, including Barrow and Jackson counties.
On Monday, Habersham Bancorp, based in Clarkesville, announced it had signed a less severe “cease and desist” order with the Georgia Department of Banking, according to Reuters. Habersham Bank operates a branch in Braselton, among other North Georgia locations. (Earlier reports misidentified the Habersham order as being with the FDIC rather than the state.) Habersham Bancorp president David Stovall said the bank is healthy and well-capitalized.
The CB&T order released last week slammed the bank’s board of directors and management, saying “the Bank had engaged in unsafe or unsound banking practices and had committed violations of law and/or regulations.”
Some sources from CB&T said that the problems are a result of lax loan practices primarily in Barrow County where the bank has offices in Winder, Bethlehem and Auburn.
But Barrow division president Randy Sims said the issues the bank faces are larger than just Barrow County.
For the full story, see the July 1 issue of The Jackson Herald.
On Monday, Habersham Bancorp, based in Clarkesville, announced it had signed a less severe “cease and desist” order with the Georgia Department of Banking, according to Reuters. Habersham Bank operates a branch in Braselton, among other North Georgia locations. (Earlier reports misidentified the Habersham order as being with the FDIC rather than the state.) Habersham Bancorp president David Stovall said the bank is healthy and well-capitalized.
The CB&T order released last week slammed the bank’s board of directors and management, saying “the Bank had engaged in unsafe or unsound banking practices and had committed violations of law and/or regulations.”
Some sources from CB&T said that the problems are a result of lax loan practices primarily in Barrow County where the bank has offices in Winder, Bethlehem and Auburn.
But Barrow division president Randy Sims said the issues the bank faces are larger than just Barrow County.
For the full story, see the July 1 issue of The Jackson Herald.
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#1
FJCR
on
07/01/09 at 05:25 PM
[Reply]
But what does this mean? Are they still open and doing banking as usual or are they closed?
#1.1
Mike Buffington
on
07/01/09 at 07:25 PM
[Reply]
The banks are open and doing business.
#1.1.1
FJCR
on
07/01/09 at 08:47 PM
[Reply]
So to customers it is business as usual? You can go in and do banking like we always did? Make deposits and cash checks??
#2
syble
on
07/06/09 at 12:39 PM
[Reply]
I BANK AT CB&T DO I HAVE TO WORRY ABOUT IT CLOSING.ARE IF THINCS WORK OUT SO THINGS WILL BE THE SAME?
#2.1
Mike Buffington
on
07/06/09 at 12:46 PM
[Reply]
Banks accounts are now insured up to $250,000 by the FDIC.
#3
FJCR
on
07/06/09 at 01:43 PM
[Reply]
Ok Thanks